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Illinois bankruptcy lawyerWhen deciding whether or not to file for Chapter 7 or Chapter 13 bankruptcy, often the choice boils down to the immediate finances. Chapter 7 bankruptcy usually requires a higher upfront payment, typically around $1,000 versus Chapter 13 may offer $0 deposit. Throughout the duration, Chapter 13 is more expensive, approximately $3,000, but many debtors are unable to produce the higher initial costs for the alternative, and Chapter 13 often allows the inclusion of the fees in the repayment plan. Unfortunately, for a significant portion of the population, this decision is costly with lasting effects on the credit for only short-term relief.

Debtors Below The Poverty Line Are More Susceptible to Relapse

The low initial costs of Chapter 13 bankruptcy is alluring for many individuals struggling to make ends meet. Armed with the dream of living in a home without collectors calling around the clock and having some money left over at the end of the month, many debtors turn to debt relief options. However, not all bankruptcy options are equal. Chapter 13 operates on a repayment plan, typically about five years in length. So long as payments are kept up to date, collectors are unable to harass clients. However, for the population living under the poverty line and struggling to make ends meet, about half make it through the first year, let alone five years, and the calls begin once more.


Illinois bankruptcy lawyerOne of the most commonly asked questions for people considering bankruptcy is, "what is a bankruptcy discharge?" A bankruptcy discharge is a court order that makes previously charged debts permanently unenforceable, effectively wiping the slate clean. The debtor becomes no longer responsible for the payment. As an additional benefit, all harassing calls, letters, and other forms of communication from creditors attempting to collect the money must stop. If collection attempts continue, creditors risk being in held in contempt of court and face potential punishments.

Are All of My Bills Dischargeable?

Not all debts discharge. Some obligations remain valid even after the completion of the bankruptcy process. Eligibility for payment discharge depends on the chosen bankruptcy chapter. Typically, Chapter 13 has a broader range of dischargeable payments. The following expenses are commonly non-dischargeable:


Illinios bankruptcy lawyerThe decision to declare bankruptcy is not easy. Admittedly, the cessation of bill collection attempts looks more appealing each time the phone rings, however, filing for bankruptcy has considerable secondary repercussions. Qualification standards and long-term effects may influence your decision when determining if Chapter 7 bankruptcy is the best solution for your situation.

What Is Chapter 7 Bankruptcy?

Chapter 7 Bankruptcy is often referred to as “liquidation bankruptcy”. It is a relatively quick process, typically completed between four and six months. Brevity appeals to a significant portion of the population, as does the discharge of unsecured debts. Discharge means credit cards, personal loans, and other unsecured debts become permanently unenforceable, never needing repayment. The downside is that you will need to sell many of your non-exempt assets; hence, the name, liquidation bankruptcy.


Illinois bankruptcy lawyerBankruptcy is designed as a way of helping honest people who are struggling to pay their debts. It can give you a fresh start at managing your budget and spending while allowing you to get established on a more secure footing. The details involved in each individual case are unique, but there are certain types of situations in which filing for bankruptcy makes the most sense.

When to Consider Bankruptcy

There are a number of common scenarios in which bankruptcy may be the best available option. These include:


Posted on in Bankruptcy

Wheaton bankruptcy lawyers, file for bankruptcy, Chapter 13 bankruptcy, bankruptcy advantages, Chapter 13 bankruptcy eligibilityHaving to file for bankruptcy can be devastating. And while it is a serious issue, there are several facts that many individuals do not know about bankruptcy as a whole. There are two notable types of bankruptcy: Chapter 7 and Chapter 13. To fully understand bankruptcy, it is very important to understand the differences.

What is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy, also referred to as a “wage earner’s plan,” gives individuals with regular income an opportunity to create a plan to pay off their debts.

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